Planning to buy gold this Diwali? These three tips will help you save money

Diwali is just four days away. It's a time of celebration, togetherness, and tradition. However, with the euphoria of the Festival of Lights comes the temptation to overspend. With Diwali just around the corner, it's important to avoid overspending on jewellery, and understanding how making charges on gold are calculated can help save money.

What are making charges?

Jewellery involves labour costs and all jewellers pass on this cost to the buyers in the form of making charges. Making charges are usually a percentage of the current gold price.

How are making charges on your gold jewellery calculated?

To save money on making charges, it is vital to understand how they’re calculated. Whether expressed as a flat rate per gram or a percentage of the jewelry’s value, these charges can vary widely. 

"Consider the cost of an 8g gold setting in a jewellery piece to be ₹ 40,000. At a flat rate of ₹ 300/g, making charges will be ₹ 2,400. However, at 12% of the cost, it hikes up to ₹4,800, which is significantly higher" said Ankit Singh Kimtee - Founder & CEO - ofDiamondXE.

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These three tips will help you save money on your gold jewellery purchase

Cross-check the pricing

Gold pricing is determined based on the purity of gold. The price of gold changes every day based on the market rate. All jewellery stores display the daily bullion rates for consumers. 

“It is crucial to inquire with the jeweller about the current price of the gold setting based on purity, and any associated costs. Additionally, consider the intricacy of the jewellery’s design. By delving into the details, you can make informed decisions and potentially save on the making charges for your diamond jewellery,” said Ankit Singh Kimtee - Founder & CEO - of DiamondXE

Compare Prices 

Research and compare prices from different jewellers to ensure that you're getting the best deal. Don't rush into a purchase; take your time to find the right piece at the right price. 

Negotiate making charges

Hence, depending on the gold cost, the amount you pay as making charge can vary. Generally, machine-made jewellery or jewellery with little artwork will come with a lower making charge.

“Making charges may vary from 6%- 20% in India currently. Hence, compare the charges on different levels and choose wisely,” said Nemallapudi Poorwa Reddy, Founder, Amodha Jewellery.

“When looking to save on making charges of diamond jewellery, consider opting for simpler designs. Elaborate and intricate patterns often lead to higher making charges,” Ankit Singh Kimtee - Founder & CEO - DiamondXE

Don't hesitate to negotiate making charges with the jeweller. Many are willing to offer discounts or concessions to close a sale, he further added.

Meanwhile, the yellow metal may see a rally of around 8-10%, in the new Samvat year 2080, analysts said.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.